• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Fat Tail Daily

Investment Ideas From the Edge of the Bell Curve

  • Menu
    • Commodities
      • Resources and Mining
      • Copper
      • Gold
      • Iron Ore
      • Lithium
      • Silver
      • Graphite
      • Rare Earths
    • Technology
      • AI
      • Bitcoin
      • Cryptocurrency
      • Energy
      • Financial Technology
      • Bio Technology
    • Market Analysis
      • Latest ASX News
      • Dividend Shares
      • ETFs
      • Stocks and Bonds
    • Macro
      • Australian Economy
      • Central Banks
      • World Markets
    • Small Caps
    • More
      • Investment Guides
      • Premium Research
      • Editors
      • About
      • Contact Us
  • Latest
  • Fat Tail Series
  • About Us
Market Analysis Latest ASX News

WiseTech Share Price Up Big on Earnings (ASX:WTC)

Like 0

By Lachlann Tierney, Wednesday, 19 August 2020

At time of writing, the share price of WiseTech Global Ltd [ASX:WTC] is up a whopping 28.3%, trading at $26.70. WiseTech announced earnings today and the numbers were clearly better than expected...

At time of writing, the share price of WiseTech Global Ltd [ASX:WTC] is up a whopping 28.3%, trading at $26.70.

WiseTech announced earnings today and the numbers were clearly better than expected.

Here are some key levels, as well as the 50- and 20-day moving averages for the WTC share price:

ASX WTC Share Price Chart - Wisetech Share Price Chart

Source: tradingview.com

 

You can see momentum waned over the past two months, but the WTC share price has punched through resistance at $25. We can look at the WTC earnings and its move to slow down acquisitions.

WTC share price perhaps unfairly maligned

As evidenced by the downtrend dating back almost a year through to the March market lows, some were sceptical about WTC’s prospects.

This included short-seller research from J Capital, which suggested its aggressive acquisition policy wasn’t yielding the desired results.

WTC’s share price growth from the March market lows was muted in comparison to other WAAX stocks, including Altium Ltd [ASX:ALU], Xero Ltd [ASX:XRO] and Afterpay Ltd [ASX:APT].

WTC is now trading at a lower P/E ratio than all three other companies, at 72.

XRO’s multiple is north of 4,000, while ALU’s sits at 103. APT doesn’t even have one yet, because it’s yet to return a profit.

Anyway, here are the headline numbers from WTC’s earnings:

ASX WTC - Wisetech Earnings and FY20 Results Summary

Source: WiseTech Global Ltd

 

These are strong numbers given the impact of the pandemic on the global logistics industry.

A slightly smaller total dividend would normally be a negative, but it’s doubtful many people are attracted to WTC shares for this reason.

In quotes carried in The Australian Financial Review, WiseTech chief executive Richard White said: ‘Having completed over 40 acquisitions in recent years, we have now assembled significant resources and development capability to fuel our CargoWise technology pipeline and therefore intend to slow our acquisition activity in the near term.’

Which means in FY20, the company will be spending more on R&D.

Outlook for WTC share price

It will be interesting to see if the upwards momentum in the WTC share price can continue and it can punch through the two levels marked out above.

In the short term, it may retest the $30 mark as the market generally moves sideways.

The pivot to growth over value was discussed recently, and I suspect this will continue.

The fact that WTC was able to grow its EBITDA in challenging market conditions is impressive, to say the least.

If you missed the WTC boat in its early days, we have a great report on four well-positioned small-caps that could follow a similar trajectory. You can get that report right here.

Regards,

Lachlann Tierney,

For Money Morning

All advice is general advice and has not taken into account your personal circumstances.

Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment.

Comments

Subscribe
Notify of
guest
guest
0 Comments
Inline Feedbacks
View all comments
Lachlann Tierney

Lachlann’s Premium Subscriptions

Publication logo
Fat Tail Investment Research

Latest Articles

  • How the “AI Flywheel” can save the global economy
    By Callum Newman

    The current bounce from April 2025 is one of its best share market comebacks in history. Why? Why is the market back up? Find out below.

  • Why didn’t Australia just buy its own gas like everyone else?
    By Nick Hubble

    The slow motion trainwreck that is Australian energy policy is accelerating. As are investor’s gains…if they positioned themselves to profit from the shemozzle. But how?

  • 2025: Halfway through the Blockbuster Decade
    By James Cooper

    Given we’re halfway through the decade, James Cooper reflects on the 2020s, and explains why volatility will continue to drive commodity prices higher for the remainder of the decade.]

Primary Sidebar

Latest Articles

  • How the “AI Flywheel” can save the global economy
  • Why didn’t Australia just buy its own gas like everyone else?
  • 2025: Halfway through the Blockbuster Decade
  • The Curious Case of CBA Demystified
  • Nvidia’s Comeback Signals AI’s Next Chapter

Footer

Fat Tail Daily Logo
YouTube
Facebook
x (formally twitter)
LinkedIn

About

Investment ideas from the edge of the bell curve.

Go beyond conventional investing strategies with unique ideas and actionable opportunities. Our expert editors deliver conviction-led insights to guide your financial journey.

Quick Links

Subscribe

About

FAQ

Terms and Conditions

Financial Services Guide

Privacy Policy

Get in Touch

Contact Us

Email: support@fattail.com.au

Phone: 1300 667 481

All advice is general in nature and has not taken into account your personal circumstances. Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment.

The value of any investment and the income derived from it can go down as well as up. Never invest more than you can afford to lose and keep in mind the ultimate risk is that you can lose whatever you’ve invested. While useful for detecting patterns, the past is not a guide to future performance. Some figures contained in our reports are forecasts and may not be a reliable indicator of future results. Any actual or potential gains in these reports may not include taxes, brokerage commissions, or associated fees.

Fat Tail Logo

Fat Tail Daily is brought to you by the team at Fat Tail Investment Research

Copyright © 2025 Fat Tail Daily | ACN: 117 765 009 / ABN: 33 117 765 009 / ASFL: 323 988